Chemplast net profit at Rs 26 cr in Q2 FY24
Ramkumar Shankar, Managing Director, said, “Following a tepid Q1 FY’24, Q2 FY’24 witnessed a relatively better performance mainly due to improvement in prices of both Suspension and Paste PVC coupled with lower feedstock prices.
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CHENNAI: Chemplast Sanmar, a speciality chemicals company, with a presence in the custom manufacturing business, has reported a net profit of Rs 26 cr for the Q2FY24 (Rs 39 cr). Revenue from operations were Rs 988 cr in Q2FY24 (Rs 1,194 cr).
Ramkumar Shankar, Managing Director, said, “Following a tepid Q1 FY’24, Q2 FY’24 witnessed a relatively better performance mainly due to improvement in prices of both Suspension and Paste PVC coupled with lower feedstock prices. The top line was flat while EBITDA was back in the black during the quarter.
However, the imports of both Suspension and Paste PVC witnessed an increasing trend towards the end of Q2 with heavy arrivals from China. This trend has spilled over to Q3 as well, resulting in some correction in prices in October.’’
Noting that the company expects the PVC margins to be under pressure in Q3, he said ‘’The demand outlook for our PVC products, however, remains strong with a boom in the infrastructure and real estate sectors. We expect the recovery in prices and margins to be gradual over the next 2-3 quarters.’’